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M&T Bank CD Rates

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by Derek Silva Updated
M&T Bank CD Rates

M&T Bank certificates of deposit (CDs) offer relatively low interest rates when compared to the best CD rates out there. There are a few exceptions, though. The 12-month option offers a competitive rate at around 1.75%. Two promotional CDs also have competitive rates. If you are considering a CD with M&T Bank, you will have some choices as there are currently seven term options available, with term lengths ranging from six months to 60 months (five years).

Interest compounds daily to help you maximize your earnings and you also have the option to receive interest disbursements during your CD term. This provides some flexibility in how you plan your savings and taxes, especially if you are contributing significantly to CDs.

Keep in mind that M&T Bank's CD accounts require a $1,000 minimum deposit. Check out the offerings from M&T Bank below to see if you want to earn some interest on your cash by parking your money there.

CD Length Minimum Deposit APY  
6 Month  $1,000 0.15% Compare CD Rates
12 Month $1,000 2.25% Compare CD Rates
18 Month  $1,000 2.75% Compare CD Rates
24 Month $1,000 2.75% Compare CD Rates
36 Month $1,000 0.90% Compare CD Rates
60 Month Promo CD $1,000 1.11% Compare CD Rates
12 Month Promo CD $1,000  1.40% Compare CD Rates

M&T Bank CD Rates Interest Rate Comparison

Overview of M&T Bank CDs

M&T Bank has more than 750 branches across eight states and Washington, D.C. Founded in in Buffalo, New York in 1856, the bank continues to focus on customers in and around the state of New York. (The other states with M&T Bank branches are Maryland, New Jersey, Pennsylvania, Delaware, Connecticut, Virginia and West Virginia.)

There are seven current CD term options from M&T Bank. Five of those are available year-round and have term lengths from six months to three years (36 months). There are also two promotional offers. Promotional offers change over time with the market. Currently they include a six-month and a 60-month CD. Promotional CDs require you to use new money, which is money that you do not already have on deposit with M&T Bank. As with all the other CDs from M&T Bank, the minimum deposit to open an account is $1,000.

One useful feature on all CDs is the ability to withdraw interest earnings before your CD reaches maturity. You do not have to withdraw the interest early, but if you want to, you can receive it either as a credit that you transfer to an M&T Bank checking or savings account or as a credit that you receive as a check. As with all interest you receive from a financial institution, you will need to pay tax on it. M&T Bank will send you a Form 1099 if you have more than $10 in interest. If you have questions about how interest or other bank dividends impact your taxes, a financial advisor will be able to answer your specific questions.

Unlike interest, you will pay an early withdrawal penalty if you attempt to withdraw any of your CD principal. CD terms of less than 365 days carry an early withdrawal penalty of $25 plus 91 days’ interest. Terms of 365 days or more carry a penalty of $50 plus 182 days’ interest. The penalty will come out of the interest earnings that you haven’t already removed from the CD account. If you don’t have enough interest to cover the penalty, it will come out of your principal.

To avoid penalties, you should wait until your CD reaches maturity to make any withdrawals or changes to your account. M&T Bank will send you a notice when your maturity date is approaching. After the maturity date you will have a 10-day grace period. You can make any necessary changes to your account during this grace period without paying any penalties. If you do not take any action during this grace period, M&T Bank will automatically renew your CD for a CD of the same term length. The interest rate on a new CD will depend on the current available rates and may not match the rate of your original CD.

How Much You Earn With M&T Bank CDs Over Time

What you earn with an M&T Bank CD will depend largely on the length of your CD term. The majority of standard CD rates are low. On six-month CDs, you won’t earn much more than a few dollars unless you fund the CD with about $10,000. Long-term CDs also have relatively low rates that won’t earn you much in interest. The best way to earn more interest when the rates are this low is simply to fund your CD with more money.

The one noteworthy exception is the 12-month CD, which offers a highly competitive rate at 1.75%. Even if you only contribute the minimum of $1,000, you will earn about $17 of interest over the term of your CD.

Promotional CDs also offer higher interest rates than the standard M&T Bank CDs. The current six-month promotional CD rate is nearly nine times higher than the standard rate.

The table below shows what your approximate total balance will be depending on your initial deposit and your term length.

Initial Deposit 6-Month CD 12-Month CD 18-Month CD 24-Month CD 36-Month CD
$1,000 $1,001 $1,017 $1,006 $1,008 $1,027
$2,500 $2,502 $2,544 $2,515 $2,520 $2,568
$5,000 $5,004 $5,087 $5,030 $5,040 $5,137
$10,000 $10,008 $10,175 $10,060 $10,080 $10,274

How M&T Bank CD Rates Compare to Other Banks’ 

Most of the rates from M&T Bank are relatively low. Make sure to compare CD Rates before opening an account because you can find more competitive rates elsewhere. This is true whether you want a short-term CD for six months or a long-term CD for 36 months. The exception is with M&T Bank’s 12-month CD. Its interest rate is generally higher than banks that require you to open a CD at a local branch, like BECU. It is also on par with banks, like Ally Bank, that operate completely online.

The current rates for promotional CDs from M&T Bank are also competitive. If you can afford to open a promotional CD (remember that they require money that is not already on deposit with M&T Bank) then you should consider it – especially for the six-month promotional offer. However, you should still examine CD accounts with other banks.

CD Account M&T Bank BECU Ally Bank
6 Month 0.15% 0.30% 1.50%
1 Year 1.75% 0.70% 2.10%
2 Year 0.40% 1.45% 2.40%
3 Year 0.90% 1.55% 2.40%

Should You Get an M&T Bank CD Account?

The best term option from M&T Bank is for its 12-month CD. It offers a rate that not many banks will beat. However, the rest of the bank’s offerings are less competitive. So if you want anything other than a 12-month CD, consider other banks. Some of the best CD rates on the market are more than twice as high as M&T Bank’s standard offerings.

If you are looking for a six-month or 60-month (five-year) CD and you want to use M&T Bank, the promotional CDs offer the best deals. The rate on the six-month promotional CD is almost nine times higher than the standard six-month CD rate. The promotional 60-month CD is the only offering from M&T Bank that is over three years. The two caveats with promotional offers are that you will need to use new money and that the minimum deposit is still $1,000. If you don’t have that much money to move to M&T Bank from another financial institution, the promotional CDs won’t work for you.

One nice benefit of M&T Bank CDs is the ability to receive your interest during your CD term. While you won’t earn significant interest with most of the options, it’s nice to spread out your earnings over time. Other banks do offer this feature, but it is far from ubiquitous. Don’t forget that CDs are inherently less flexible than other bank accounts and if you need regular access to your money, you should consider a high-interest savings account instead of a CD.

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SmartAsset’s interactive map highlights the places in the country where people have the opportunity to save money. Zoom between states and the national map to see the best places to save.

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Rank County Median Household Income Cost of Living Purchasing Power Estimated Tax Rate

Methodology Where you live can have a big impact on how easy it is to save money based on several regional factors. Our study aims to find the most suitable places for people to save based on median household income, average living expenses and income tax burden.

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Sources: US Census Bureau 2016 5-Year American Community Survey, MIT Living Wage Study